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FHA Mortgage
A mortgage that is backed (insured) by the Federal Housing
Administration. It allows lower down payment (at least 3.5%) and
easier credit qualifying
Fixed Rate Mortgage
Mortgage where the interest rate remains the same over the life of
the loan. Your monthly payment remains the same until the end
of the loan.
Good Faith Estimate
Form provided by the lender within three business days with basic
information about a reverse mortgage loan, including costs, features
and terms.
Housing Expense ratio
Used in conjunction with the debt-to-income ratio by lenders, to
determine how much house you can afford. It is your mortgage
payment (Principal, interest, taxes, insurance & HOA fees) divide by
your monthly gross income, multiplied by 100. Lenders usually use
28%
Inspection (home)
The process of assessing the structure, appliances, utilities and
other important features of a house before closing.
Inspection (pest)
The process of inspecting a house for pests, such as termites.
Interest
Cost of money borrowed. Interest is added back to the principal to
give total debt.
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